ISS Calculation (Brazilian Hub SuiteApp)
The Imposto Sobre Serviços (ISS) tax applies to services that your company provides or hires. The ISS tax is a municipal tax, and its tax rate varies according to the service provided and the city in which the company provided it.
Setting Up ISS Calculation
In NetSuite, you must set ISS parameters for each service and each city with which you do business.
To set up ISS calculation:
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Go to BRHub > Fiscal > Parametrização de Impostos de Serviço.
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Click Edit.
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Click the ISS subtab.
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In the Código de Serviço column, select the service code associated with the service provided or hired.
The column displays the service codes listed on the attachments of Law no. 116, of July 31, 2003, from the Brazilian federal government.
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In the Código de Tributação column, enter the taxation code associated with the service provided or hired.
Each city government assigns different taxation codes to each service. The taxation code indicates the type of service provided or hired.
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In the Município column, select the city in which you provide the service.
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In the Alíquota column, enter the ISS rate on the service.
The ISS rate varies according to the city in which you provide the service and the type of service.
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In the Data Inicial Vigência column, enter or select the start date for the effectiveness of the parameter.
The start date is the date on which the parameter takes effect for transactions subject to ISS. The date is usually defined by law.
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(Optional) If the parameter expires on a date predetermined by law, in the Data Final Vigência column, enter or select the end date for the effectiveness of the parameter.
The end date is the date on which the parameter expires, losing its effect. You can edit this field later if the law changes and affects the effectiveness of the parameter.
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(Optional) If the parameter should only apply to a certain service item, in the Itens de Serviço column, select the service item the parameter applies to.
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(Optional) If NetSuite must take into account the ISS amount from transactions using this parameter in the calculation basis for the Programa de Integração Social (PIS) and the Contribuição para o Financiamento da Seguridade Social (COFINS) taxes on imported services, check the BC do PIS/COFINS Importação box.
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(Optional) If transactions using this parameter are subject to tax substitution, in the CST column, select the código de situação tributária (CST) code associated with the service.
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Click Add.
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Repeat the previous steps to add parameters for as many services or cities as required.
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Click Save.